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Bulgaria's Ognyanovo-K gets shareholders nod for capital cut

Author Mario Tanev
Bulgaria's Ognyanovo-K gets shareholders nod for capital cut iurii/

SOFIA (Bulgaria), July 16 (SeeNews) - Bulgarian building materials producer Ognyanovo-K said that its shareholders have approved the company's plan to cut its capital by 4.56 million levs ($2.62 million/2.33 million euro) to 14 million levs.

Ognyanovo-K intends to cancel 4,563,793 own shares which it repurchased from its majority owner Plena Bulgaria, the minutes from the company's shareholders meeting, published last week, showed.

Plena Bulgaria will receive 2.6 million levs for the shares, while the remaining part of their value - 1,963,793 levs, will be allocated to Ognyanovo-K's reserve fund.

Earlier this year, Bulgaria's government extended Ognyanovo-K's concession contract for mining limestone from the Ognyanovo-77 deposit, in the country's southwest. The initial contract was signed in 2001 for a term of 20 years.

Ognyanovo-K generated revenue of 26.3 million levs in 2018 and closed the year with a net loss of 1.3 million levs.

(1 euro = 1.95583 levs)